Loss Leading could destroy Kiwi lamb’s reputation

Posted by Damien O`Connor on July 22, 2014

Meat companies that supply supermarkets and sell New Zealand lamb as a loss leader in the United Kingdom should lose their access to this valuable quota market, said Labour’s Primary Industries spokesperson Damien O’Connor.

“Our reputation as a Lamb producer must be hurt by today’s reports that Welsh farmers are protesting outside British supermarkets where New Zealand lamb is being sold at what those farmers claim are artificially low prices. Those prices are in turn reducing the price of British lamb at the height of the northern hemisphere season.

“Such action by supermarkets destroys the value and the image of New Zealand lamb as a premium product grown and processed to the highest international standards of food production.

“Any loss leader action undermines New Zealand’s brand. New Zealand farmers will be horrified to think their quality lamb products are being misused by UK supermarket chains. The value of their lamb is being missed as well as that of Welsh farmers.

“I have sympathy for New Zealand and Welsh farmers, all who should receive more for their lamb rather than see their product sold for a song by UK supermarket chains battling for market share,” Damien O’Connor said.